EUR/USD: Current corrective pullback has a chance to reach 1.0945 – UOB Group

FXStreet Insights Team FXStreet

Euro (EUR) could rebound further vs US Dollar (USD), but any advance is likely part of a higher range of 1.1125/1.1225. In the longer run, EUR remains under pressure, but it remains to be seen if the current corrective pullback can reach 1.0945, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

EUR remains under pressure

24-HOUR VIEW: "Two days ago, EUR plunged by 1.42% to close at 1.1087. Yesterday, when it was at 1.1095, we noted that 'the sharp and swift selloff is deeply oversold.' However, we pointed out, 'With no signs of stabilisation just yet, there is scope for EUR/USD to weaken further, but any decline is unlikely to break the major support at 1.1055.' We were incorrect. Instead of weakening, EUR rebounded to a high of 1.1194. While EUR could rebound further today, any advance is likely part of a higher range of 1.1125/1.1225. To put it another way, any advance is unlikely to break clearly above 1.1225."

1-3 WEEKS VIEW: "Last Friday (09 May, spot at 1.1220), we indicated that 'buildup in momentum indicates further declines in EUR toward 1.1145.' After EUR plummeted on Monday, we highlighted yesterday (13 May, spot at 1.1095) that EUR “remains under pressure, but it remains to be seen if the current corrective pullback can reach 1.0945.' We continue to hold the same view, but after the subsequent rebound, the likelihood of EUR pulling back further to 1.0945 has decreased. Conversely, a break above 1.1225 (no change in ‘strong resistance’ level from yesterday) would mean that EUR has entered a consolidation phase."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD extends recovery, trades above 1.3200

GBP/USD holds on to modest gains above 1.3200 on Friday, building on gains seen in the previous day. Still, Cable struggles to build on its recovery as cautious market sentiment keeps investors focused on the US-Iran conflict and ongoing volatility in global technology stocks.

EUR/USD pops to daily highs near 1.1420

EUR/USD extends Thursday's recovery and climbs past the 1.1400 yardstick at the end of the week. The pair’s recovery comes as the US Dollar remains on the back foot, while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold advances to two-day highs, targets $4,100

Gold trades in a tight range above $4,000 per troy ounce on Friday, adding to the recent recovery. The precious metal, however, finds it difficult to attract fresh buyers as expectations for a hawkish Fed continue to strengthen.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

The Mag 7 trade is ending – The AI cash-flow divorce is just beginning

The AI boom is not weakening. The market is simply becoming less willing to reward companies for writing ever-larger infrastructure cheques without a clearer cash-return timetable. Microsoft, Amazon, Alphabet and Meta are becoming the financing arm of the AI cycle, while chips, memory, networking and power infrastructure increasingly look like the early cash beneficiaries.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.